"Intel's stock has risen a stunning 490% over the past year, a bet by Wall Street that may be running well ahead of the company's actual turnaround. Tan, who took over in March of last year, has spent much of his first year schmoozing rather than restructuring - locking in a sweetheart deal with the U.S. government (now Intel's third-largest shareholder), cozying up to Elon Musk on a factory partnership, and reportedly landing preliminary manufacturing agreements with both Apple and Tesla."
"The fundamentals are still messy. Intel's chip yields lag well behind industry leader TSMC, and employees tell Bloomberg that Tan has been light on specifics internally, with some teams adjusting missed deadlines rather than recovering from them. But investors are betting big on the bigger picture. Whether the execution follows is the multi-billion-dollar question."
Intel’s stock has risen about 490% over the past year, reflecting investor confidence in a turnaround under CEO Lip-Bu Tan. Tan took over in March of last year and spent much of the first year building relationships and securing deals rather than driving immediate restructuring. Intel locked in a favorable U.S. government arrangement, which became its third-largest shareholder, pursued a factory partnership with Elon Musk, and reportedly sought preliminary manufacturing agreements with Apple and Tesla. Operational fundamentals remain difficult, with chip yields lagging behind TSMC. Employees report limited internal specifics and deadline adjustments instead of full recovery, leaving execution as the key uncertainty.
Read at TechCrunch
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